If you think insurance for your condominium or cooperative apartment is covered by your association fees, think again. Typically, your monthly condo fees are used to fund a building insurance policy. But if your apartment is robbed or damaged, your building insurance will not provide any coverage for your personal possessions, nor will it offer you any protection from personal liability. To protect your belongings and yourself, you need to purchase a personal home insurance policy (type HO-6) which is designed for condos and co-op apartments.

Condo and co-op owners should first review their association master insurance policy to find out what that policy covers, and what it does not. In most cases, that building insurance policy should cover common areas such as the hallways, roof, basement, elevator, boiler, and common walkways, for both liability and physical damage. Co-ops and condominium associations can also obtain coverage for sewer backups, seepage, floods, earthquakes, employee dishonesty, and changes in municipal rules and regulations. For older buildings, another option is liability coverage for claims resulting from exposure to lead-based paint.

In some cases, the building association insurance policy also covers the standard fixtures in each apartment. The condo owner may only be responsible for personal property inside the unit and for any additions or alterations made to the original structure, such as new carpeting. In other situations, the building policy covers only the bare walls, leaving apartment owners responsible for insuring anything inside a unit such as cabinets, carpeting, and bathroom fixtures.

Under the general terms of HO-6 condominium owner coverage, your homeowners insurance policy should cover your personal property from 17 perils, including: fire or lightning; windstorm or hail; explosion; riot or civil commotion; aircraft; vehicles; smoke; vandalism or malicious mischief; theft; damage by glass or safety glazing material that is part of a building; volcanic eruption; falling objects; weight of ice, snow, or sleet; three categories of water-related damage from home utilities or appliances; and electrical-surge damage.

A basic condo/co-op policy should also provide liability protection for incidents such as someone tripping and falling while in your apartment. In addition, if a covered peril should make your condo or co-op uninhabitable, your policy should include a provision to pay the additional living expenses you incur when you have to temporarily live somewhere else.

Cash or replacement value: You can insure your personal possessions for either the cash value or their replacement cost. With cash value coverage, you receive the value of the item minus depreciation, while replacement value pays the current cost to replace the item.

Deductible amount: What level of deductible can you afford? $250? $500? A higher deductible can mean lower insurance premiums, but if something happens, be prepared to pay out that high amount.

Unit or loss assessment: If your co-op or condo building is damaged by an insured disaster or its members are sued, and the cost of that damage is not fully covered by the association policy, this type of coverage would pay for your share of an assessment charged to all unit owners.

Flood or earthquake: Most standard homeowners policies do not include coverage for either floods or earthquakes. If you live in an area where either may occur, consider adding coverage for either catastrophe, or both.

Floaters: Most policies set limits for items like jewelry, collectibles, and computers. If you own expensive items, you can pay extra premiums to have those items fully insured under what is called a floater. Without a floater, a policy will cover such items only under general categories and offer reimbursement up to a maximum of only a few thousand dollars (limits vary).

Discounts: Insurance companies offer an array of discounts. Factors that could bring down costs include smoke detectors, alarm systems, deadbolt locks, closed-circuit television, a secured-entry system, or a doorman. If you insure your unit with the same company that underwrites your building insurance policy, you might get an additional reduction in premium. You could also qualify for a multiline discount if you purchase your condo/co-op and auto insurance from the same company. More discounts might be available depending on your age or whether you are a nonsmoker. Building location and amenities also play a role in your rates. Typically, the better quality and newer the dwelling, the lower your premiums will be.